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Taxation in Microeconomics Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. If you earned $75,000 last year in taxable income and had to pay $15,250 in taxes, what was your average tax rate?

Question 2 2. Which of the following is the best explanation of tax rate?

Question 3 3. Which is the best explanation of a tax?

Question 4 4. What do you call a tax system where the tax rate increases as income increases?

Question 5 5. Which of the following is the formula for average tax rate?

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Question 6 6. Which of the following is a feature of the federal income tax in the United States?

Question 7 7. Which of the following is paid for using federal tax dollars?

Question 8 8. Income taxes are paid using what method?

Question 9 9. Which level of government relies mainly on property taxes?

Question 10 10. For the majority of states, where does revenue originate for state level government?

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Question 11 11. What effect do taxes levied at the federal and state levels have on consumer prices?

Question 12 12. What type of income tax system is currently in place at the federal level in the United States?

Question 13 13. Which of the following is an example of a regressive tax?

Question 14 14. If the United States radically overhauled the tax code and established a flat tax, what type of tax structure would it have?

Question 15 15. Which of these institutions has the authority to levy taxes in the United States?

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Question 16 16. The fictitious country of Cozmoville just added a 4% tax to all hats sold within its borders. The price elasticity of demand for hats is 0.55. The price elasticity of supply for hats is 0.75. Using this information, determine the tax incidence for the consumer.

Question 17 17. When there is elastic demand for a product, who holds the tax incidence?

Question 18 18. Tax incidence is used to analyze who, between _____, is really paying the tax.

Question 19 19. If the consumer tax incidence for a product is 78.77%, what is the producer tax incidence on that product?

Question 20 20. Which of the following would describe a consumer who doesn't change his demand when there's an increase in price?

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Question 21 21. Which of following are not funded by tax revenue?

Question 22 22. What is the term for money granted by the government to assist an industry or business so that the price of their products or services may remain low?

Question 23 23. What is the term for compulsory contributions to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions?

Question 24 24. Which of these is not an example of a subsidy?

Question 25 25. What is defined as the basic physical and organizational structures needed for the operation of a society?

Taxation in Microeconomics Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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